Figuring out how to pay off your holiday debt or other credit card debt can be a daunting, challenging task. Doucet & Associates Co., L.P.A. has created a list of tips and tricks to help you eliminate your debts, become debt free, and avoid receiving calls from debt collectors. If you are already receiving phone calls from debt collectors with uncontrollable behavior, the lawyers at Doucet & Associates Co., L.P.A. might be able to help you put an end to those phone calls. Click here to learn more about debt collection abuse, or continue reading for tips and tricks on eliminating your debts.
- Determine how much you owe
It is important to get organized and figure out how much you owe altogether. What are the totals of your debts, when are your due dates, and what are the minimum payments? Make a chart and mark your due dates on a calendar.
- Set Goals
If you have goals and you successfully accomplish them, then you can reward yourself. We suggest starting out by paying at least the minimum on every debt every month. Once you get comfortable paying the minimums, pick the one of the debts and start paying a little over the minimum every month. You could pick your smallest debt to target first or the debt with the highest interest rate. Hopefully with this strategy you will be eliminating your debts efficiently.
- Transfer your balances
Many new credit cards have no interest rates for a couple of months to a few years. You can transfer your credit card debt to another card so you do not have to keep battling rising interest rates. Some banks may make you pay a fee to transfer the debt, but that fee could be cheaper than the interest the debt may accumulate over the next year. Then shut down the old card.
- Stop using your credit cards
If you have to spend money, spend cash. Do not increase your debts by using your credit cards.
- Set a budget for yourself
Figure out how much you need to pay for your living essentials such as rent, food, and bills and compare it to how much you make. Then try to save all your spare money for your debts. You can increase the amount of money you are saving every month by reducing the amount you are spending.
We suggest stop eating out at restaurants, start packing homemade lunches and cooking meals at home, become an avid window shopper, and if you have to spend money try to buy used instead of new. Many cities also offer a lot of free entertainment and events at parks and other public places for when you feel like going out.